The Retail Industry Leaders Association (RILA) released the following statement in response to the release of the Internal Revenue Service (IRS) draft forms for complying with the reporting requirements under the Affordable Care Act (ACA). The forms, released late on July 24, were issued with no instructions or technical specifications. The IRS website states that draft instructions relating to the forms will not be posted until August and the forms and instructions won't be finalized until later this year.
"The IRS only released draft forms, with no instructions or technical specifications. For the longest time, retailers have been pounding their heads, asking for this information from the IRS in order to get their systems up and running and comply with these requirements beginning this January. Yet again, it's too little, too late for employers. Our immense frustrations with the IRS continue," said Christine Pollack, Vice President of Government Affairs at the Retail Industry Leaders Association (RILA).
The draft forms, 1094b, 1094c, 1095b and 1095c, regard complying with code sections 6055 and 6056 under the ACA. Under these requirements, employers must compile monthly and report annually numerous data points to the IRS and their own employees. This data will be used to verify the individual and employer mandates under the law, and administer premium tax credits for coverage in Exchanges/Marketplaces.
Retailers are working to build new or modify existing operating systems to comply with the Administration's new law and yet, six months before employers need to begin compiling data there are no instructions for how to do so.
Additionally, on July 23, Senator Mark Warner (VA) sent a letter to the Treasury Department calling for further delay of the employer mandate under ACA or for the Administration to make the regulations on employers less burdensome. As a first step in reforming these requirements, RILA strongly supports Senator Warner's Commonsense Reporting Act of 2014, S. 2176. The bill amends two aspects of the requirements and calls upon the federal departments to conduct a study and report to Congress on the development of a more streamlined reporting system.
RILA, the trade association of the world's largest and most innovative retail companies, product manufacturers, and service suppliers, promotes consumer choice and economic freedom through public policy and industry operational excellence. Our members provide millions of jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad. RILA members offer quality and affordable health care to their employees and dependents, and are leaders in benefits design by customizing plans to meet their workforces' specific needs.